[4] The community was named for Sara Kemp, mother of Levi Noble, the first postmaster, and was officially established when the post office opened in 1851.

Still, hoping to profit from this growth and the possible construction of a railroad through the area, bought land just north of the community (where the current city sits) and after surveying, dividing the tract into lots, and platting it, persuaded the directors of the Southern Pacific Railroad to lay tracks across his property by offering the company a number of lots.

Another early settler, Sam Parmalee, followed suit and offered the rail company right-of-way through his property.

Prospering with the surrounding cattle ranches and cotton farms, the community developed as a trade center for the lower part of the county.

By the early twentieth century, the population had reached 513, and the Methodist and Baptist congregations had established churches.

Much of the land around town was still devoted to cattle production, and many residents commuted to jobs in the Dallas area.

During the summer of 2011, the city received national attention due to its aging water utility system and complications resulting from the severe Texas drought of 2011.

The city operates a public works department including water and wastewater utilities, and the Kemp Municipal Court.

The city employs a city secretary, a small administrative staff, a municipal judge/court clerk, a public works director, a small public works staff, a chief of police, a police sergeant/K9 unit, and several full-time and reserve officers.

On May 9, 2012, the city council voted to disband the Kemp Police Department in favor of outsourcing to the Kaufman County Sheriff due to budget constraints.